AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Cloud Computing
With time, more and more banks are migrating into a cloud network. Cloud computing stores data over the internet and helps to create an opportunity for bankers to directly associate and work with their clients. Adoption of cloud network has largely been seen in fintech companies. The technology helps the banking system to lower their operational cost and lift their overall efficiency.
Artificial Intelligence
AI plays an important part in the banking and finance sector. The main aim of AI is to obtain and deliver customer preferences, while customising their products according to the current trend in the market.
Blockchain Adoption
Blockchain is a huge aid to business and government requirements. In 2019, many of the big banks introduced the blockchain network across trade finance, supply chain, retail and corporate banking, which helps the banking sector to ease their operations.
Let us discuss four stocks in the banking sector with their recent updates:
Commonwealth Bank of Australia
Commonwealth Bank of Australia (ASX: CBA) provides finance and banking-related services. It is a component of the Big Four banks of the country and has branches in New Zealand, Asia, North America and Europe.
CountPlus acquires Count Financial
On 1 October 2019, CountPlus Limited (CUP) concluded the acquisition of Count Financial Limited from Commonwealth Bank and would be operating as Count Financial business. The transaction was approved by the shareholders on 6 August 2019. The bank would offer an indemnity to CUP worth $200 million and claims under the same would be required to be notified to CBA under 4 years. The bank is undertaking the remedial program to compensate the customers affected by the transaction. The transaction was first announced on 13 June 2019.
Change in Substantial Holding
On 27 September 2019, the company announced a change in substantial holding in Australia Finance Group Limited to a voting power of 8.79 per cent from 9.81 per cent.
Issue of Subordinate Notes
On 12 September 2019, the company issued $2.5 billion subordinated notes. The $1.5 billion 3.610 per cent subordinated notes would be due in 2034 and $1.25 billion 3.743 per cent would be due in 2039. The notes possibly would exchange into ordinary shares (fully paid) of the company, if a non-viability trigger event occurs. The maximum exchange number was reported to be 94.82 ordinary shares for each note. The issue would not have any material impact on the companyâs financial stance.
Stock Performance
The stock of CBA was trading at $77.900 on ASX on 9 October 2019 (AEST 01:08 PM), down by 0.891 per cent from its previous closing price. The company has approx. $1.77 billion outstanding shares and a market cap of $139.14 billion. The 52-week low and high value of the stock is at $65.230 and $83.990, respectively. The stock has generated a return of 11.22 per cent in the last six months and a return of 10.75 per cent on a year-to-date basis.
National Australia Bank Limited
A renowned name in the business, (ASX: NAB) provides financial, banking and related services, and works with small, medium and large businesses. It funds important infrastructure such as schools, hospital and roads. The bank was officially listed on Australian Securities Exchange in 1974.
Additional cost for customer-related remediation
On 2 October 2019, the company announced additional cost for customer-related remediation and changes in software capitalisation policy. The company informed additional charges of $1,180 million after-tax provisions for customer-related remediation. The catalyst for the additional charges was the addition of a provision for possible user refunds of advisor service fees provided to the (self-employed) advisers. The company is likely to shun down its 2H19 cash earnings by an almost $1,123 million post tax.
Dividend
On 23 September 2019, the company announced distribution of a fully franked dividend of $0.7705 with 12 December 2019 as an Ex-date and 23 December 2019 as the payment date (total distribution rate of 3.0905 per cent).
The Start date for Ross McEwan
On 20 September 2019, the company notified that the start date for Ross McEwan as Chief Executive Officer and Managing Director would be 2 December 2019. Mr McEwan previously worked with RBS Group and would step down as CEO on 31 October 2019, following the appointment of Alison Rose as a new RBS CEO.
Stock Performance
The stock of NAB was trading at $27.890 on ASX on 9 October 2019 (AEST 01:10 PM), down by 0.712 per cent from its previous closing price. The company has approx. 2.88 billion outstanding shares and a market cap of $80.98 billion. The 52-week low and high value of the stock is at $22.520 and $30.00, respectively. The stock has generated a return of 13.72 per cent in the last six months and 18.87 per cent on a year-to-date basis.
Australia and New Zealand Banking Group Limited
A component of the Australian big four banks, (ASX: ANZ) is headquartered in Melbourne, and is a financial services company.
Dividend
On 24 September 2019, ANZ notified about the distribution fully franked dividend of $1.6156, payable on 24 March 2020. The dividend distribution rate is 1.0287 per cent with 13 March 2020 as an ex-dividend date.
Issued of SGD500,000,000 3.75 per cent fixed subordinated notes
On 24 September, the bank announced the issue of 3.75 per cent fixed rate subordinated notes due by March 2027 (SGD500,000,000). The interest payment date for the notes is 23 March 2020 and the record date is 20 March 2020.
Stock Performance
The stock of ANZ was trading at $27.090 on ASX on 9 October 2019 (AEST 01:11 PM), down by 1.204 per cent from its previous closing price. The company has approx. 2.83 billion outstanding shares and a market cap of $77.72 billion. The 52-week low and high value of the stock is at $22.980 and $29.30, respectively. The stock has generated a return of 7.49 per cent in the last six months and 14.92 per cent on a year-to-date basis.
Macquarie Group Limited
A diversified financial entity, (ASX:MQG) provides banking, advisory, capital, risk and finance solutions pertaining to equity, debt and commodities.
Ceased to be substantial holder & Change in Director Interest
On 3 October 2019, the group announced that Vanguard Group ceased to be the substantial holder of MQG. The Vanguard group now holds 4.980 per cent of the voting power. Additionally, The Macquarie group announced the change in director (Diane J Grady) interest with the acquisition of 125 MQG shares. The number of securities held after change was 9,468 MQG shares, 100 MQGPB notes, 390 MQGPC notes and 500 MQGPD notes.
The companyâs outlook for FY 2020 can be read HERE.
Stock Performance
The stock of MQG was trading at $125.280 on ASX on 9 October 2019 (AEST 01:12 PM), down by 1.027 per cent from its previous closing price. The company has approx. 354.38 million outstanding shares and a market cap of $44.86 billion. The 52-week low and high value of the stock is at $103.300 and $136.840, respectively. The stock has generated a negative return of 3.66 per cent in the last six months and a positive return of 17.74 per cent on a year-to-date basis.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
